ASTANA. July 29. KAZINFORM /Muratbek Makulbekov/ One of the biggest projects currently realized in our country is Western Europe - Western China  transport corridor. President Nursultan Nazarbayev repeatedly said that using Kazakhstan's advantageous geographical position and transit potential would be a powerful stimulus for the country's socio-economic development.  Kazakh Minister of Transport and Communications Abelgazy Kussainov

tells what effect is expected from the project's implementation in an interview with Kazinform.

In one of your interviews you said that Western Europe - Western China transcontinental corridor was a key infrastructure project at the beginning of the century. What does it mean for Kazakhstan?

This mega project covers 5 regions of Kazakhstan - Aktobe, Kyzylorda, South Kazakhstan, Zhambyl and Almaty with 7.9 million population that is half of Kazakhstan. Roads in these regions are to be reconstructed.

The main advantage of the project in comparison with the existing TransSib and Suez Canal corridors is its length and travel time. If you use the sea lane a travel time can last to 45 days. TransSib can take 14 days. The duration of driving along Western Europe - Western China highway from Lianyungang port to the European border will be about 10 days with 10 hours of actual 'drive' time a day, two drivers and average speed of 80 km/h.

The project will provide cargo transportation in three main directions: China - Kazakhstan, China - Central Asia, China - Kazakhstan - Russia - West Europe.

The project's feasibility study shows that by 2020 the volume of cargo transportations will increase 2.5 times from 13 million tons to 33 million tons per year.

When is the project planned to be finished?

Full completion of the construction on the territory of Kazakhstan is scheduled for December 2012. Infrastructure development will last till mid-2013.

What is the cost of the project?

The total cost of the project is KZT 825.1 bln. Whereby, minimum expenses are required from the state budget.

It is now possible due to economic and political stability in the country therefore we are able to receive historic borrowings from international financial institutions. Thus, the International Bank for Reconstruction and Development first time in history lent USD 2 bln 125 mln for the realization of the project. These funds will be used for the reconstruction of 1062 sector of the road that runs along Kyzylorda and South Kazakhstan regions.  The European Bank for Reconstruction and Development provided a loan in the amount of USD 180 mln for the reconstruction of Aktobe-Martuk-Border road.  The Asian Development Bank provided a USD 702 mln loan for the reconstruction of the roads in Zhambyl region. The Islamic Development Bank has lent USD 394 mln for the 172 km sector of Zhambyl region road reconstruction.

KZT 136.1 bln is envisaged in state budget for co-financing construction of 304 km section of the road. 301 km section of the Almaty - Khorgos road and 209 km of Tashkent - Shymkent road are planned to be realized through the private investment on the concessional basis in the amount of KZT 267 bln.

What will be the share of domestic content in the project?

We expect that the share of domestic content in this project will make 86% this year. We have launched several domestic enterprises manufacturing road construction materials, namely, galvanized barrier fencing, lighting poles, paint and marking materials and road bitumen etc.  In future with launch of Aktau Bitumen Plan we plan to raise domestic content up to 94%. Besides, 50, 000 people are expected to be involved in implementation of the project by 2012, 85% of them will be local citizens.

How will the project affect Kazakhstan's economy?   

The construction of the road now has great impact on the economy of Kazakhstan especially on the adjacent spheres. Among them are establishment of roadside services. These are called to provide needed service along the road and create new jobs.

The representatives of the local population expressed their views during a recent press-tour 'Western Europe - Western China' that were glad to have new jobs created in the region. According to them the project helps develop small business, representatives of which have become the main food suppliers. For instance in Zhambyl region one farmer calculated that one contractor organization needed one cattle, one ton of milk, 300 loaves of bread and 900 bottles a day. In fact he developed a three-year business plan and he intends to increase the number of cows up to 1, 000 heads.

Thanks to the start of the construction of the highway in Shieli district new jobs were created in the sphere of small and medium businesses. New hotels are built in the region, transportation service increased its level. These are not all the examples of the development of the regions where the construction works are carried out. It is really beneficial for our country.

Will the state support domestic carriers within  Western Europe - Western China project?  

 According to the Law of Kazakhstan 'On automobile transport' one of the main goals of the state is to create conditions for competitiveness of domestic carriers at the international market. Thus the Ministry will render all possible assistance to domestic carriers to improve their competitiveness in the international transportation market.

Thank you very much for the interview!